Canada announced to withdraw, on September 1, most of its customs duties on American products

Canada will withdraw customs duties so far imposed on American products respecting the conditions of the North American free trade treaty (ACEUM), Prime Minister Mark Carney announced on Friday August 22; A gesture meeting the exemptions granted at the start of the month by Washington on Canadian products.

At a press conference after a telephone exchange with American president Donald Trump, Carney assured that from 1^is September, Ottawa “Will eliminate customs duties on American products” Respecting the conditions provided by the Canada – United States – Mexico Treaty, while the two countries have accelerated their discussions for a broader trade agreement.

According to Mr. Carney, recent negotiation executives for trade agreements signed by Washington with several of its partners, including the European Union (EU) and Japan, are above all a way “To buy a right of access to the first world economy”.

85 % of Canadian products are not taxed

For Canada, which has not yet been able to get along with its neighbor, the average effective rate applied to Canadian products is 5.6 % because « 85 % [des] products are not taxed “insofar as they leave for the United States as part of the ACEUM.

Trump applied 30 % customs duties to Canadian products, but by granting an exemption to almost all of the products entering the United States which comply with the provisions of the free trade agreement.

An exemption maintained at the beginning of August when the customs duties presented by the US President was entry into force as being “Converse” And which target the main trade partners of the United States. A gesture qualified as essential by Mr. Carney, and which explains Ottawa’s desire to apply in turn the same exemption on American products from 1^is september.

“There is a time for everything in the match (…) We were first in order to play physical during the first half to send a message, that’s what we did ”spinning the sporting analogy. “But also comes for a while in the match [où] You want to mark “he added, stressing that his government is now focused on signing an agreement that would offer long-term benefit to the Canadian economy.

Mr. Trump described as ” nice “ Canada’s decision. “He withdraws these customs duties from reprisals, which is I think nice, and we will have a new telephone exchange soon. We had a very good exchange (…) I like it ”said the American president in the oval office.